Replies

I invested $500 in Exxon in the early 1990's by investing directly through the dividend reinvestment plan. I allowed all the dividends to reinvest in shares of stock plus I occasionally sent $50 to the dividend reinvestment plan to add to purchase additional shares. Today, thank's to the company's strong performance and high dividend, my small investment is worth over $20,000. At the current price of $90.47 per share the dividend rate is 2.52% and assuming the business continues to perform well the dividend may be periodically increased. By holding the stock in the dividend reinvestment plan, in addition to buying shares directly from the company and reinvesting your dividends you will receive a proxy allowing you to vote your shares at the annual meeting. If you wish to buy the shares directly from the company instead of through a broker go to this website: http://www-us.computershare.com/investor/3x/plans/planslist.asp?bhjs=1&fla=0&stype=dspp Disclaimer - I am not recommending the sale or purchase of shares and I have no relationship with the company other than the shares I own. Your decision to invest should be based on your own research and assessment of the company's prospects.

"Your decision to invest should be based on your own research and assessment of the company's prospects."

I would assess XOM's prospects as better than mine or the country's over the next 50 years or so. I think their acquisition of gas producer XTO several years ago will turn out to be particularly prescient.

My wife inherited an odd lot of Exxon that her grandmother acquired during the depression of the 1930s. It came to my wife upon the dissolution of a small trust and so has the original cost basis of grandma's Standard Oil purchase 80 odd years ago.

I forget what the basis is, but several years ago when I calculated it for her account, I noted that the cost was significantly less than the quarterly dividend then being paid, perhaps 40 or 50 cents. I can't begin to calculate what that means as a total return over that period.